"For those people who are in work, more will be on temporary contracts than for a very long time - the highest for 10 years, " shadow work and pensions secretary Liam Byrne told the BBC.

BBC: UK unemployment falls to 2.53 million

Labour's shadow work and pensions spokesman Liam Byrne said the long-term unemployed needed to be "working or training and not claiming".

BBC: Labour urges temporary jobs for long-term unemployed

"We have another rushed U-turn which offers nothing more and no protection for disabled children, " shadow work and pensions secretary Liam Byrne said.

BBC: Council estate in the London Borough of Tower Hamlets

For Labour, shadow work and pensions secretary Liam Byrne called it a "very hazy and half-baked plan from the prime minister, when what we really need is a serious back-to-work programme".

BBC: Cameron suggests cutting housing benefit for under-25s

Mr Grayling was responding to shadow work and pensions secretary Liam Byrne who said, as he opened a Labour-led debate on the subject on 9 November 2011, that the "crisis" of youth unemployment had been "unfolding in almost every community in this country".

BBC: Government defends record on youth unemployment

Often they do that in a shadow economy -- a place where employers may offer them less than the minimum wage or make them work overtime without extra pay.

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On Thursday, Work and Pensions Secretary Iain Duncan Smith wrote to former Labour ministers - including his shadow, Liam Byrne, and former culture minister Margaret Hodge - pressing them to reveal what advice they received about A4e.

BBC: Ministers' anger over A4e welfare-to-work whistleblower

For Labour, shadow chancellor Ed Balls said it supported efforts to get people back to work and believed welfare should not be open-ended.

BBC: Bishops sign open letter criticising welfare reforms

Shadow defence minister Gemma Doyle said the plan could only work if the government worked with employers and suggested considering anti-discrimination legislation for reservists to help them combine working life with a career in the reserves.

BBC: Tory backbenchers criticise plan to cut regular army